DSE holds AGM meeting on Thursday

1:28 pm March 31, 2016| Last Modified: 1:28 pm March 31, 2016

Dhaka, Bangladesh (BBN)-The 54th Annual General Meeting (AGM) of the shareholders of Dhaka Stock Exchange (DSE) will be held Thursday at 7:30pm at Le Méridien hotel in Dhaka, capital of Bangladesh, officials said.
The DSE board of directors has recommended 10 per cent cash dividend for fiscal year 2014-15, which will be placed at the AGM for final approval.
It will be the first dividend payout for its shareholders after the bourse turned into a profitable organisation from non-profitable one.
This cash dividend will bring some relief to its shareholders who are passing tough times for a bearish trend in the secondary market, which is their main source of income, said Shakil Rizvi, a shareholder director of the DSE.
“Share holders will be able to overcome some difficulties of doing business by realising the dividend,” he said.
The bourse’s accounts will be able to support a maximum of 14 percent cash dividends for fiscal 2014-15, as its net income was BDT 1.35 billion with earnings-per share of BDT 0.75, compared to BDT 1.34 billion and BDT 0.74 respectively a year ago.
Most of the income was generated from interest on fixed deposits, rather than the bourse’s core business, according to DSE’s annual report.
The net asset value per share stood at BDT 11.68 at the end of June 2015, up from BDT 10.93 a year ago.
After demutualisation, DSE’s paid-up capital stood at BDT 1.80 billion at the end of June 2015.
The demutualisation scheme was approved by Bangladesh Securities and Exchange Commission in 2013, to bring transparency to the stock market.
Demutualisation is a way to separate the bourses’ management from ownership.
It transforms a stock exchange into a profit-oriented company owned by shareholders and ensures alternative business models and operational efficiency.
Prior to demutualisation, Bangladesh’s stock exchanges were non-profit cooperatives, owned by the exchange members, who were usually stockbrokers.
The 13-member demutualised DSE board includes seven independent directors, four shareholder directors, managing director and one strategic partner.
However, the post of strategic partner still remains vacant.BBN/SK/AD

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